A red candlestick is a key visual element in candlestick charts used in financial trading. It represents a price decline during a specific time frame, indicating bearish market sentiment. A red candlestick forms when the closing price of an asset is lower than its opening price.

The candlestick has a rectangular body that connects the opening and closing prices, with thin vertical lines (wicks or shadows) extending above and below. These wicks represent the highest and lowest prices during the period.

Traders analyze red candlesticks in combination with other candlesticks and chart patterns to predict future market trends. A series of red candlesticks may signal a strong downtrend, while a single red candlestick could indicate temporary price weakness.